VTC Tradewings Pvt. Ltd., New Delhi V. DCIT, Circle- 26(2), New Delhi

ITA 2827/DEL/2018

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 8954 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 6 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-11-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2012-2013
• Appeal Filed On: 22-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIRANI BANYAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ( Delhi Bench “F”, NEW DELHI) (Through Video Conferencing) BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER and Dr. B.R.R. KUMAR , ACCOUNTANT MEMBER ITA No. 2827/Del./2018, A.Y. : 2012-13 M/s. VTC Tradewings Pvt. Ltd. (Earlier known as Surya Tradewings Pvt. Ltd.) 2 nd Floor, KLJ Tower, North B- 5, Netaji Subhash Place, Wazirpur, New Delhi Vs Dy. Commissioner of Income Tax, Circle-26(2), New Delhi (APPELLANT) (RESPONDENT) (PAN : AAPCS3897R) Assessee by : Shri Sudhir Sehgal, Adv. Revenue by : Sh. Shirani Banyal, Sr. DR Date of Hearing: 14.09.2021 Date of Pronouncement: 10.11.2021 O R D E R Dr. B.R.R. KUMAR, AM : This appeal has been filed by the assessee against the order of the ld. CIT(A)-9, New Delhi, dated 22.07.2016. 2. Following Grounds have been raised by the assessee :- ITA No.2827/Del./2018 M/s. VTC Tradewings Pvt. Ltd. 2 “1. That the Ld. Worthy Commissioner of Income Tax (Appeals) has erred in dismissing the appeal of the assessee vide order, dated 22.07.2016 and confirming the addition as made by the Assessing Officer in ex-parte order. 2. That no notice of hearing as detailed by the CIT(A) in para-2 of the order was either received or served upon the assessee since the assessee had already shifted his office address as mentioned in the order of Worthy 3. That the passing of ex-parte order by the Worthy CIT(A) is against the facts and circumstances of the case. 4. Notwithstanding the above said ground of appeal, the confirmation of following addition as made by the Assessing Officer is against the facts and circumstances of the case:- i). Addition of Rs. 9,29,253/- under transportation charges A/c ii). Addition of Rs. 7,91,566/- under Van Hire Chares A/c iii). Addition of Rs. 3,29,893/- under rent Account. 5. That the confirmation of adhoc addition of 10% is not proper without pinpointing/specifying any particular vouchers or expense as stated above and, therefore, it is not justified. 6. That the Appellant craves leave to add or amend the grounds of appeal before the appeal is finally heard or dosposed off.” 3. The assessee company is engaged in the business of wholesale trading of FMCG goods. The assessment has been completed on 22.2.2015 making disallowances on account of transportation charges and other expenses. The Ld. CIT(A) vide order dated 22.07.2016 confirmed the disallowances made by the AO owing to non-appearance of the assessee during the first appellate proceedings. 4. Aggrieved the assessee filed before us. During the hearing the Ld. AR submitted that the order of the ld. CIT(A) has been passed ex-parte without affording due opportunity. It was pleaded that owing to change of address the notices could not be received. It was submitted that given an opportunity the assesse would comply with the requirements of the revenue in deciding the matter. The Ld. DR argued that the assessee has ITA No.2827/Del./2018 M/s. VTC Tradewings Pvt. Ltd. 3 willfully did not comply the notices issued by the Ld. CIT(A) and hence no further opportunity be given. 5. On going to the material before us, we find that interest of justice would be well served if the matter is restored to the file of the AO who is the primary authority to examine the expenses. Hence, we remind the matter to the file of the AO with direction to the assessee to comply to the notices issued by the revenue without seeking unnecessary adjournment and file the details as sought. 6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in open court on this 10 th day of November, 2021. Sd/- Sd/- (AMIT SHUKLA) (Dr. B.R.R.KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER *Binita* Dated : 10/11/2021 Copy forwarded to: 1.Appellant 2.Respondent 3.CIT 4.CIT(A), New Delhi. 5.CIT(ITAT), New Delhi. AR, ITAT NEW DELHI.